MetroIntelligence Economic Update by P. DUFFY
November Federal Reserve minutes show willingness to slow pace of rate increases
A number of (Federal Reserve Open Market Committee) participants observed that, as monetary policy approached a stance that was sufficiently restrictive to achieve the Committee’s goals, it would become appropriate to slow the pace of increase in the target range for the federal funds rate. In addition, a substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate.
Consumer sentiment slips 5.2 percent in November as uncertainty rises
Consumer sentiment fell 5% below October, offsetting about one-third of the gains posted since the historic low in June. Along with the ongoing impact of inflation, consumer attitudes have also been weighed down by rising borrowing costs, declining asset values, and weakening labor market expectations. Uncertainty over these expectations remained at an elevated level, indicating that the general stability of these expectations may not necessarily endure.
Investor home purchases fell sharply in 3Q2022
Investor home purchases fell 30.2% year over year nationwide in the third quarter, the largest decline since the Great Recession aside from the second quarter of 2020, when investor activity plummeted due to the onset of the pandemic. That outpaced a 27.4% drop in overall home purchases nationwide. Investor purchases slumped 26.1% on a quarter-over-quarter basis, the largest quarterly decline on record with the exception of the start of the pandemic. That compares with a 17.4% quarterly drop in overall home purchases.